The company announced that the company plans to issue 112,951,807 shares and purchase 100% of the shares held by EasyRide Investment with an estimated asset value of 1.5 billion yuan (the price per share is 13.28 yuan). 2) The company plans to privately issue 105,421,683 shares to 6 specific investors, with an issue price of 13.28 yuan per share and raise capital of 1.4 billion yuan. After deducting issuance fees, the company plans to expand the Internet ride-hailing platform business with new purchases, information system construction, and supplementary working capital of listed companies and supplementary working capital of listed companies. After the transaction is completed, the company's share capital will increase by 218,373,490 shares, accounting for 55.07% of the company's total share capital after issuance. After the transaction is completed, the actual controller of the company will be changed from Huang Maoru to Zhang Zhenxin. Zhang Zhenxin and his co-actors, Yi Sheng Investment and Liqun, together held 42.74% of the company's total share capital after the issuance was completed. The lockdown period for the shares issued this time is 36 months, and the issue price premium is 7.1%, which is beneficial to stock price stability in the short term. Furthermore, the trading company has not made any arrangements for retail business, so it is not ruled out that it will incorporate assets related to department store retail in the next three years. Key points supporting ratings The business model has changed from traditional commercial services to a new business service model: since in recent years the company has been affected by the macroeconomic downturn, e-commerce shocks, etc., revenue growth is weak, and there is a lack of sustainable profitability. After the acquisition of Yicheng Rental Network, the company's main business will change to a highly profitable car rental business based on car rental business, covering everything from vehicle procurement to disposal of closed-loop services throughout the life cycle. Car Rental's leasing business has covered 27 key cities across the country. It has technical systems such as professional driver behavior analysis and advanced real-time vehicle fleet location, monitoring and dispatch management, etc., and relies on the Internet of Vehicles to provide customers with comprehensive travel solutions. The injection of new business will effectively help the company complete the transformation from traditional retail business. eCar Rental Network is committed to becoming an O2O service platform that relies on providing customers with comprehensive solutions for managing travel. The company currently has 2192 self-operated vehicles, and has technical systems such as professional driver behavior analysis and advanced fleet real-time positioning, monitoring and dispatch management, etc., and its business scope covers 27 cities across the country. The company is mainly for enterprises and institutions, including an Internet car platform, which provides services such as vehicle network management and technology research and development, vehicle rental franchisee service driver recruitment, management, training, and used car evaluation and appraisal. It is worth noting that using September 30, 2015 as the evaluation benchmark date, the unaudited ownership interest of the parent company owned by Yicia Rent-A-Net was 342.1771 million yuan, and the estimated 100% equity value of Yicia Rent-A-Net was about 1.5 billion yuan, the value-added value was about 115,78.2229 million yuan, the value-added rate was about 338.37%, and the value-added rate was high. This is the main reason why companies issue at a premium. Easy Car Rental Network estimated that the company's net profit for 2016-18 was 118 million yuan, 171 million yuan, and 227 million yuan. It will effectively enhance the company's performance. The main risk faced by ratings The retail business continues to erode profits. After the acquisition of the valuation company is completed, the main business will change from traditional commercial retail business to an emerging commercial service business that relies on vehicle mobility tools to serve institutional customers and end consumers through Internet functions. This business transformation allows the company to enjoy a high valuation premium. Assuming that the 2016 consolidated statement of Easy Car Rental and the share capital increase was completed in 2016, we expect the 2015-17 fully diluted earnings per share to be -0.4, 0.01, and 0.252 yuan (previously -0.9, -0.7, and -0.4 yuan) to maintain the target price of 20.50 yuan/share and maintain the buying rating.